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The differences between investment bankers and hedge fund managers can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 2-4 years to become an investment banker, becoming a hedge fund manager takes usually requires 8-10 years. Additionally, an investment banker has an average salary of $162,715, which is higher than the $135,399 average annual salary of a hedge fund manager.
The top three skills for an investment banker include financial services, discounted cash flow and capital markets. The most important skills for a hedge fund manager are hedge funds, derivative, and private equity.
| Investment Banker | Hedge Fund Manager | |
| Yearly salary | $162,715 | $135,399 |
| Hourly rate | $78.23 | $65.10 |
| Growth rate | 10% | 10% |
| Number of jobs | 28,460 | 2,225 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 69% | Bachelor's Degree, 74% |
| Average age | 43 | 47 |
| Years of experience | 4 | 10 |
An investment banker is responsible for selling and issuing securities and financial assets to the stock markets to generate money and raise capital for organizations and financial institutions. Investment bankers also work with private clients to advise them of investment options and financial transactions according to the market's condition and clients' interests. They handle the clients' investment portfolios and create propositions for acquisitions and company mergers. An investment banker must have excellent knowledge of the financial and stock industry, as well as having excellent analytical skills to review statistical data and determine the best financial strategies.
A hedge fund manager manages an investment pool, popularly called a hedge fund. This entails managing liquid assets that have been contributed by a limited number of investors who have met a certain net worth investment. They oversee this fund and make investment decisions for this fund, including running its daily affairs. Another part of their duty is to monitors stock markets and choose which assets to buy. They may also have to make money by using several investment techniques such as selling or leveraging.
Investment bankers and hedge fund managers have different pay scales, as shown below.
| Investment Banker | Hedge Fund Manager | |
| Average salary | $162,715 | $135,399 |
| Salary range | Between $95,000 And $276,000 | Between $70,000 And $261,000 |
| Highest paying City | Boston, MA | Rochester, NY |
| Highest paying state | Alaska | New York |
| Best paying company | Citi | Kforce |
| Best paying industry | Real Estate | Insurance |
There are a few differences between an investment banker and a hedge fund manager in terms of educational background:
| Investment Banker | Hedge Fund Manager | |
| Most common degree | Bachelor's Degree, 69% | Bachelor's Degree, 74% |
| Most common major | Business | Finance |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between investment bankers' and hedge fund managers' demographics:
| Investment Banker | Hedge Fund Manager | |
| Average age | 43 | 47 |
| Gender ratio | Male, 76.2% Female, 23.8% | Male, 74.2% Female, 25.8% |
| Race ratio | Black or African American, 5.5% Unknown, 4.1% Hispanic or Latino, 11.5% Asian, 12.4% White, 66.2% American Indian and Alaska Native, 0.2% | Black or African American, 7.6% Unknown, 4.7% Hispanic or Latino, 12.8% Asian, 9.0% White, 65.2% American Indian and Alaska Native, 0.7% |
| LGBT Percentage | 6% | 10% |